Springfield Board of Assessors asked by City Council to assess rooftop cell phone antennae income

SPRINGFIELD – The City Council this week asked the Board of Assessors, in setting new property values, to assess income from rooftop cell phone antennae to the maximum amount allowed under state law.

The council, in a non-binding resolution, proposed that the city tax the rental income from the rooftop antennae “to the maximum extent permitted under the laws of the commonwealth and the directives of the Department of Revenue.”

Councilors said the hope is to generate additional tax revenue.

City Assessor Richard J. Allen said the board considers all approaches in assessing such properties and generally prefers the income approach for commercial, industrial and apartment buildings. Other approaches include cost and sales comparison, under law.

Allen did not disclose the specific approach used regarding antennae income.

Russell Seelig, a Forest Park resident, said the city is missing out on significant tax revenue by not pursuing the income approach to its fullest extent. Seelig raised his concerns during two recent meetings with the council’s General Government Committee.

Various buildings, including some shopping centers, office and apartment buildings and industrial buildings, have the antennae and collect rent, Seelig said. He cited Tower Square on Main Street and the Springfield Plaza on Liberty Street as two examples.

Allen said assessors do gather information from commercial property owners, including rental income. That information is “privileged and confidential” under state statute.

The council, as part of the resolution, is also asking the Department of Revenue to issue an advisory on the tax approach.

Councilor James J. Ferrera III, chairman of the government subcommittee, praised Seelig for his personal research. Property managers for Tower Square and the Springfield Plaza were not immediately available for comment.

Seelig said the income approach, while not required, is “normally the best approach to get the fair market value.”

The Department of Revenue Division of Local Services, in a 2005 publication, stated that assessors must use two methods when assessing commercial and industrial properties.

The division further stated that the income approach “is generally reserved for investment properties, where the income stream can be measured and calculated into a value estimate.” Commercial, industrial and apartment buildings fit into that category, the division stated.